The Canadian inventory market has continued to development larger in 2025. Notably, the S&P/TSX Composite Index is up about 20% 12 months so far regardless of ongoing tariff-related uncertainties. Rate of interest cuts and the resilience proven by the broader economic system have led many Canadian shares to ship distinctive year-to-date returns. Nonetheless, shares of a number of essentially sound firms are nonetheless buying and selling at interesting valuations, making them too low-cost to overlook.

So, when you have $500, now may very well be an opportune time to put money into these undervalued but essentially robust Canadian firms. These shares have the potential to ship significant capital features.

On this context, listed below are two Canadian shares which can be too low-cost to overlook.

TSX inventory #1: goeasy

goeasy (TSX:GSY) is likely one of the prime TSX shares that’s too low-cost to be missed. The lending and leasing companies supplier has seen its shares drop almost 30% over the previous three months. This drop in goeasy inventory is essentially as a result of a short-seller report from Jehoshaphat Analysis that accused the corporate of manipulating its accounting to spice up earnings and conceal credit score losses.

The inventory took one other hit after the subprime lender’s newest quarterly outcomes confirmed strain on earnings. Notably, goeasy’s shift towards secured loans, tighter underwriting requirements, larger provisions for credit score losses, and rising finance prices adversely impacted its backside line. Whereas these elements have weighed on short-term efficiency, in addition they sign a extra conservative and risk-aware method to lending.

Importantly, goeasy has rejected the short-seller’s claims and reaffirmed its monetary outlook. Furthermore, the transfer towards secured lending, whereas reducing yields, enhances stability and reduces long-term credit score threat. As the corporate maintains operational self-discipline, its margins and earnings are well-positioned to recuperate over time.

Demand for goeasy’s credit score options stays strong, with mortgage progress throughout unsecured lending, dwelling fairness, auto financing, and point-of-sale segments. Its diversified funding base, strong underwriting capabilities, and regular enlargement into new markets and merchandise present a robust platform for sustainable progress.

Following the current selloff, goeasy now trades at 6.6 occasions its anticipated earnings over the following 12 months, nicely beneath its historic common. With strong fundamentals, double-digit earnings progress potential, and a 4.5% dividend yield, the present weak point in GSY presents traders with a uncommon alternative to buy shares of this high-growth firm at a reduction.

TSX inventory #2: MDA House

MDA House (TSX:MDA) inventory has misplaced important worth, declining roughly 50% during the last three months. Shares of this house know-how firm got here beneath important strain as a result of issues associated to its main contracts. Nonetheless, this decline presents a strong shopping for alternative as its fundamentals stay strong with the corporate working in a fast-growing house economic system.

The downturn started when EchoStar scrapped a multi-billion-dollar satellite tv for pc deal and bought its spectrum licenses to SpaceX. Sentiment worsened after reviews instructed MDA’s main shopper, Globalstar, is likely to be in early talks to promote to SpaceX. That raised issues that SpaceX might carry Globalstar’s future satellite tv for pc manufacturing in-house, doubtlessly undermining MDA’s $1.1 billion contract to construct digital satellites.

Nonetheless, MDA’s fundamentals are strong. The corporate is a pacesetter in digital satellite tv for pc techniques, robotics, and geointelligence. These areas are set to profit from surging world demand in communications, defence, and Earth remark. Furthermore, MDA’s strong steadiness sheet provides the flexibleness to capitalize on progress alternatives.

Because the house trade continues to draw important funding from governments and personal gamers alike, MDA seems well-positioned to capitalize on new alternatives. General, the steep drop in its share worth regardless of its strong fundamentals and powerful demand surroundings makes MDA House inventory a compelling funding.